To Shape Armholes: Bind off 6 sts at beginning of each of next 2 rows. Then, dec. 1 st at end of each row until 98 sts remain. Work straight until piece measures 6½ inches from 1st row of armhole shaping, ending with a p row. On next row, k 33, turn (thus starting neck shaping). Work over these 33 sts, decreasing 1 st at neck edge every other row 3 times. Work straight until piece measures 7½" from 1st row of armhole shaping. To shape shoulder, starting at armhole edge, bind off 10 sts every other row until all sts are bound off. Slip the next 32 sts onto a stitch holder. Attach yarn and work the next 33 sts to correspond.

Back. Work exactly as for Front to shoulder shaping, omitting neck shaping. To shape shoulders, bind off 10 sts at the beginning of each row, until 38 sts remain. Break off. Slip these sts onto a stitch holder later to be worked for collar.

Collar. With right side of work toward you, slip the 1st 16 sts of Front onto circular needle. Attach yarn and k the remaining 16 sts, then pick up 18 sts along side of neck, k across 32 sts of Back, pick up 18 sts on other side of Front neck edge and k the remaining 16 sts of Front. Hereafter work in ribbing of k 1, p 1, for 5 inches. Bind off loosely.

Sleeves. Starting at armhole edge, with No. 4 needles cast on 46 sts and work in stockinette st, increasing 1 st at beginning of every row, until there are 90 sts on needle. Then dec. 1 st at both ends of 11th row and every 10th row thereafter, until 66 sts remain. Work straight until piece measures 17 inches, measuring at underarm seam. Next row: K 4, (k 2 tog., k 3) 12 times, k 2 (54 sts). Work in ribbing of k 1, p 1, for 4 inches. Bind off. Make other sleeve to correspond. Sew up underarm and shoulder seams. Sew up sleeve seams and sew sleeves in.